Improve your credit score to get higher home loan amount

Getting a home loan can make that dream home purchase a breeze. But, before any bank in India sanctions the loan amount, it is compulsory for them to verify your repayment history of any financial credit. In other words, your credit score can determine your loan approval.

What is a credit score?

CIBIL https://www.cibil.com/ is the foremost credit rating agency in India that rates each borrower’s credit-worthiness. It gives you a 3 digit numeric summary of your credit history ranging from 300 to 900. The higher your credit score, better your chances of obtaining a higher loan amount. On this scale, a score of 700-plus is considered excellent and a score lower than this can affect your loan approval to a great extent.

In fact, today almost all banks https://www.hdfcbank.com, https://www.onlinesbi.com, https://www.icicibank.com, https://www.axisbank.com, and financial institutions https://www.lichousing.com refer to the CIBIL credit score as a vital parameter to evaluate if a borrower is eligible for a loan, including that for property. This is done by checking if you, a borrower, have paid all dues on your financial instruments of credit such as a credit card, auto loan, personal loan, other home loan, etc. on time.

How can you improve your credit score?

Do not lose heart if you have a low credit score for some reason. Some folks are unable to make their payments on time due to unforeseen circumstances or change of city, travel, illness, etc.

If you are looking for a home loan on your dream house and rue having low credit score, there are smart ways you can still improve it and take a step closer to your home.

• Start by paying all your dues on time. Maintain a diary or planner. Or even set reminders on your mobile phone. Defaulting on an EMI or a credit card monthly repayment is a strict no-no. Opt for an ECS (electronic clearing system) from your bank account. You can choose the date for the automatic transaction to repay the credit. Ensure you have sufficient balance in your bank account.
• Control your credit. Plainly speaking, avoid over expenditure on your credit card. Also restrict the number of loans. Repay an existing loan before applying for another. For instance, if you are applying for a home loan, first complete repayment of your auto loan.
• Avoid applying for new credit. Don’t have multiple credit cards so you find it difficult to repay them. Apply for new credit if you need it and can repay it as soon as possible because too much debt can affect your credit score too.
• Keep a mixed basket of credit instruments. It’s best to keep a combination of secured loans such as auto loan, home loan, etc, and unsecured ones such as credit cards, personal loan, etc. Balance the repayment tenure between a short and long one. Having several unsecured loans can affect your repayment ability.
• Check your joint, co-signed and guaranteed accounts regularly. In all these accounts, you are equally liable for missed payments if any. If your partner, joint holder or guaranteed individual defaults on repayments, it can boomerang on your credit score. Avoid being a joint holder or even a guarantor of any loans.
• Review your credit history frequently. There could be those rare times when your loan repayment or credit card payment may not be updated in your account statement. If you spot any such inconsistencies or any suspicious transaction in your repayment record, get them rectified by your bank or lender immediately to set the record straight.
• Begin to build up good history. Use your credit wisely. You could opt for longer repayment tenure when you take a loan so your EMI is low. You could also, perhaps, increase your credit limit and keep your utilisation low so it can show a positive score.

You are now ready to secure that loan for your dream home. And we at HM Constructions are the best people to realise your dream.

HM Constructions http://www.hmconstructions.com/ is a popular construction group with several residential and commercial projects scattered around the city. Each of the homes is built in a way to offer maximum space and comfortably accommodate a family of four.

Book your home for Rs 10,000 only

This unique scheme lets you book any of our spacious units of your choice at a token amount of Rs.10,000 only. Since the units are ready-to-move, you can finish up the formalities and move into an apartment of your own in just 10 days. What’s more, once you move in, you can let HM take the burden of your EMIs! The EMI Holiday Facility lets you postpone your EMIs by 10 months so that you may enjoy your stay at HM Indigo for nearly a year before you start paying the EMIs.

So, stop worrying about your monthly rental and book an http://www.hmindigo.com/ apartment today. Call us on 8880225555 and we will help you find a home that suits your lifestyle, falls within your budget, and is close to all that you would need throughout the year!